Why Has Housing Inventory Been Shrinking?

While you read that title, just note that ALL housing inventories have not been shrinking. Homes in the price point of $750,000 or higher are in surplus. Wanted to clarify that. But for the most part in Green Bay, WI or really all of Brown County, WI – we are in a housing inventory shortage. 

So why? Why oh why is this happening? Let’s break it down:

  1. Current homeowners are staying in their home longer. The average number of years homeowners have stayed that have sold this year reached 8.3 years. That is a record high. 
  2. Millenials. We can always blame them right? KIDDING. On some charts I AM a Millennial and I don’t think we’re to blame for a lot of what we are blamed for.. But seriously, the # of millenials have surpassed the # of Baby Boombers as the largest adult population and we are all trying to buy these non-existent houses for sale! 
  3. Lack of new construction. How is there a lack of new construction homes being built you ask? Lack of land, lack of good labor, and lack of materials. Because new construction homes cost so much more to the made, the price of them are higher too. This is edging out a lot of first-time home buyers not able to buy a house in that higher price point.